Novartis Launches New Share Buyback Program Of Up To $15B

Novartis AG NVS is launching a new share buyback worth up to $15 billion to be executed by the end of 2023, adding it was confident in its top-line growth and deep pipeline.

• The buyback is funded through the $20.7 billion Novartis raised by selling its nearly one-third voting stake in Roche Holdings AG RHHBY. Its capital allocation strategy combines investing in core business and returning excess capital to shareholders.
• Novartis said it had the flexibility to return value to shareholders "without compromising its capacity for value-creating bolt-on M & M&A, whilst providing a strong, growing dividend and reinvesting in the business."
• Novartis confirmed it expected sales to grow by 4% or more through 2026 and 20 new assets with significant sales potential set to be approved potentially.
• Novartis will ask shareholders to approve an additional CHF 10 billion buyback authority at the annual general meeting on March 4 to cover the amount exceeding the CHF 8.8 billion still available under the existing shareholder authority granted in 2021.
• Related Link: Novartis Has $21B From Roche Stake Sale - Which Company Is On Its M&A Radar?
• Price Action: NVS shares are up 4.21% at $84.95 during the premarket session on the last check Thursday.